Bakkt To Test Bitcoin Futures In July

Bitcoin futures exchange Bakkt said it would start testing physically-settled bitcoin futures contracts in July. As detailed in the ICE Futures U.S. filing with the U.S. Commodity Futures Trading Commission (CFTC), bitcoin futures will be listed on a federally regulated futures exchange in the coming months.

“In conjunction with our exchange and clearing partners at ICE, we’ll be working with our customers over the next several weeks to prepare for user acceptance testing (UAT) for futures and custody, which we expect to start in July,” Bakkt CEO Kelly Loeffler said in a blog post. She, however, did not reveal the launch date.

Two futures contracts will be listed: A daily settlement bitcoin future, which will help customers to transact in a same-day market, and a monthly bitcoin futures contract, which will enable trading in the front month and across the forward pricing curve.

The settlement prices on ICE Futures U.S. will be based on prices discovered in Bakkt’s physical delivery contracts without relying on unregulated cash markets. Bakkt will contribute $35 million into the clearinghouse risk waterfall.

For physical delivery and secure storage of bitcoin, an integrated custody service will be fulfilled by Bakkt’s qualified custodian.

Kelly Loeffler said the company is working with the New York State Department of Financial Services to become a trust company and operate as a qualified custodian for digital assets, alongside its CFTC-regulated futures products. That work continues and will enable custody for delivery of bitcoin futures.

Marc D’Annunzio recently joined Bakkt as its General Counsel. He will lead the company’s management of legal, regulatory, compliance and governance matters.